Imagine you are a Rogers Ultra-lite internet customer that pays $26 a month for Internet service and imagine over the holidays, while you were off work, you decided to view some "free" movies online from Rogers new on Demand online (RODO) service.
Then imagine that a few months later you receive a bill for $76 because during your time off, the "free" Rogers on demand videos online that you watched caused you to exceed your monthly bandwidth cap by 10GB or more.
This ugly scenario could unfold beginning in March when Rogers Cable increases its maximum overage charges for high speed internet customers from $25 to $50 per month. After March, new Ultra-lite customers will pay an additional usage charge of $5.00 per gigabyte up to 10 GB per month after they exceed their measly two gigabyte allotment.
In case you are wondering 10GB is about the same amount as what is stored on one and a half DVD disks or about one-third of a Blu-ray disk.
Currently Rogers caps its overage fees at $25 per month per customers and going forward the cap will be $50. Even Rogers Ultimate customers who pay $100 a month now be required to pay for every gigabyte over their monthly allotment to a maximum of $50.
Add it all up and Rogers High Speed Internet users could be paying an additional $300 per year extra to download and watch "free videos".
Interestingly while new Ultra-Lite customers who download more than 7GB a month will have to pay $76 a month for service, Rogers Ultra Lite and Lite customers who signed up prior to January 14, 2008 will still have a usage allowance of 60 GB.
In the past Rogers has claimed that bandwidth caps and overage fees were necessary to stay profitable, however, it is unclear how the company can make profits from earlier ultra-lite customers who have a 60GB cap but find it necessary to charge new ultra-lite customers who download 14GB of data a month a whopping $76 a month!
Discuss in Digital Home's Canadian High Speed Internet forum .